Retirement

How much do I need to save for retirement? How do I plan for retirement? Both are pretty basic questions that are top of mind for most people who are at or approaching retirement age, and the uncertainty and anxiety around these questions have only increased in light of the financial crisis. A recent article lists 5 risks that should be on the radar of anyone contemplating retirement: Inflation Longevity risk Market risk Health problems and expenses Losing a job or unexpected retirement Source...

Forbes magazine publishes a relatively new section called "Forbes Woman" that is dedicated to issues affecting professional and executive women. A recent column discusses financial planning and the need to consider longevity risk when constructing a portfolio--particularly in light of recent capital market volatility . Longevity risk is especially relevant to women since their life expectancies are longer than men. In addition, many women find themselves solely responsible for their family...

Corporate pension plans face the real risk of having their plan participants live longer than what is projected by actuaries. In other words, similar to an individual who considers an annuity to offset the risk of outliving their assets in retirement, pension plans must deal with longevity risk . A new derivatives market is evolving to deal with longevity risk on an institutional scale. Many of the deals thus far have been between investment banks such as JP Morgan and insurance companies that...

It is a fact that people are living longer with each passing year. Longevity risk or the risk of outliving one's assets must be a fundamental consideration with any financial plan. Annuities can provide an effective hedge against longevity risk, and a longevity annuity can be especially useful in providing guaranteed lifetime income . Some facts and figures from the Prudential Insurance Company : Today, once an individual has reached age 65, he can expect to live, on average, 19 years or more...